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Thursday, 31 Jan 2013

Written Answers Nos. 30-39

European Investment Bank Loans

Questions (30)

Thomas P. Broughan

Question:

30. Deputy Thomas P. Broughan asked the Minister for Communications, Energy and Natural Resources if he will report on the potential level of European Investment Bank funding available for energy saving proposals for Irish public and private companies and the local authorities; and if he will make a statement on the matter. [4595/13]

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Written answers

The European Investment Bank (EIB) provide financial support through a number EU programmes and instruments aimed at assisting Member States in supporting EU energy efficiency policy implementation and initiating associated investments. The European Energy Efficiency Fund (EEEF) was launched in July 2011. This €265 million fund provides tailor-made debt and equity instruments to local, regional and national public authorities, and public and private entities acting on their behalf. The EEEF aims at financing bankable projects in energy efficiency, renewable energy and clean urban transport through innovative instruments and in particular promoting the application of Energy Performance Contracts (EPC). A technical assistance grant support is available for project development services (technical, financial) linked to the investments financed by the Fund.

Launched in 2009 under Intelligent Energy Europe, the European Local Energy Assistance Facility (ELENA) initiative provides technical assistance grants (of up to 90% of eligible costs) to local and regional authorities for development and launch of sustainable energy investments. It consists of four operational windows with the European Investment Bank (EIB), Germany’s KfW banking group, KfW, the Council of Europe Development Bank (CEB) and the European Bank for Reconstruction and Development (EBRD). The ELENA Facility enables the financing of investments both by private and public sources and facilitates connection with financial instruments (such as JESSICA). Joint European Support for Sustainable Investment in City Areas (JESSICA), is an initiative of the European Commission developed in cooperation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). It supports sustainable urban development and regeneration through financial engineering mechanisms.

EU Member States can choose to invest some of their EU structural fund allocations in revolving funds to help recycle financial resources to accelerate investment in Europe's urban areas. These financial instruments (Urban Development Funds) invest in public-private partnerships and other projects included in integrated plans for sustainable urban development.

The pilot phase of the EU-EIB Project Bond Initiative was established in 2012 and aims to revive and expand capital markets to finance large European infrastructure projects in the fields of transport, energy and information technology. The scope of this pilot phase is to test the project bond concept during the remaining period of the current multi-annual financial framework 2007-2013. The pilot phase of the initiative will be implemented by the European Investment Bank (EIB), with the objective of stimulating investment in key strategic EU infrastructure in transport, energy and broadband.

The breadth of the Funds available for energy efficiency projects highlights the current lack of traditional financing instruments for such projects. This is as relevant in Ireland as elsewhere in Europe. Budget 2013 saw the commitment of €35 million towards the creation of a domestic fund, on which I expect to be in a position to announce further details of in the coming weeks.

Inland Fisheries Issues

Questions (31)

Martin Ferris

Question:

31. Deputy Martin Ferris asked the Minister for Communications, Energy and Natural Resources his plans to discuss inland fisheries during Ireland's Presidency of the EU; and if he will make a statement on the matter. [4672/13]

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Written answers

As the Deputy will be aware inland fisheries activity is based in “domestic waters” and interaction at EU level is limited. Some discussion on Inland Fisheries issues takes place as part of the broader Fisheries Agenda under DG Mare of the European Union. Working Groups and Committees are mainly attended by colleagues in the Department of Agriculture, Food and the Marine (DAFM) as the majority of items fall within the remit of that Department. Officials in my Department liaise regularly with DAFM colleagues on issues falling within our remit to ensure a consistent approach within the wider Fisheries discussions. On issues of particular importance to my Department officials from my Department and Inland Fisheries Ireland do and will continue to attend relevant meetings.

The international dialogue on salmon management has a broader international context and takes place within the remit of the regional fisheries organisation the North Atlantic Salmon Conservation Organisation (NASCO). I am pleased to advise the Deputy that Ireland will be hosting, on behalf of the EU, the 30th annual General Meeting of the NASCO, in June 2013, during our EU Presidency. While the EU is a contracting party to NASCO and Member States, Including Ireland attend the negotiations, the event will also involve State delegations from Russia, Norway, USA, Canada and Denmark in respect of the Faroe Islands and Greenland. There will also be a significant number of Inter-governmental (IGOs) and Non-governmental Organisations (NGOs) attending.

Work will also continue at EU level on the protection of the European Eel and in respect of the management of eels, the Deputy will be interested to know that, following a public consultation exercise, Ireland’s report of the status of eel under the first three years of the Eel Management Plan was submitted to the European Commission in mid-2012. Feedback on that from the Commission is awaited. The review of eel stocks in Europe is a shared concern involving many countries on a pan-European basis and we await details of all European reviews to inform future discussions.

Offshore Exploration

Questions (32)

Niall Collins

Question:

32. Deputy Niall Collins asked the Minister for Communications, Energy and Natural Resources his views on adopting the Moroccan model (details supplied) for State involvement in offshore exploration and extraction; and if he will make a statement on the matter. [4739/13]

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Written answers

Countries that have petroleum production use a range of models to obtain a financial return from their natural resources. These models vary both in terms of the instruments used and in terms of the level of take which the State seeks to obtain. Some countries, including Morocco, use a combination of instruments, such as: State participation in licences; production royalties; along with taxation, while other countries, including Ireland, take an approach that is principally based on taxing profits.

Each country’s fiscal system tends to have its own individual characteristics. While Morocco’s terms include a State share in the licence along with royalties ranging from 3.5% to 10%, the terms also provide for an exemption from corporate tax for a ten year period from the commencement of production. In determining the appropriate approach at a national level a range of factors must be considered, with the principal factor being the relative prospectivity of the area. Directly replicating the fiscal regime of another country is unlikely to provide the optimum outcome. Regard must also be had to the approach adopted by countries with whom we are directly competing for a share of international exploration investment.

Telecommunications Services Provision

Questions (33)

Mick Wallace

Question:

33. Deputy Mick Wallace asked the Minister for Communications, Energy and Natural Resources the outcome of the research initiated by him in relation to potential interference that may be caused by the new 4G network; and if he will make a statement on the matter. [4764/13]

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Written answers

The issue raised in the Deputy’s Question may arise right across the EU as 4G services are rolled out. I can confirm that a group has been established by my Department to examine the degree to which this issue may arise in Ireland when the roll out of 4G services commences later in 2013. The group comprises officials from my Department, as well as representatives from ComReg, the BAI, RTÉ and the mobile industry and its focus will be on assessing the potential for any disruption to TV signals in households that use “free to air” television and to identify any possible remedial measures that may be required. The approaches being developed in other countries, including the UK, will be studied by the group and will help inform the approach that we will take in Ireland. ComReg has already confirmed its view that any disruption that may arise to TV signals would be capable of being addressed by filters which are available. It is my intention that an agreed joint strategy should be put in place in advance of 4G roll-out that fully addresses the issues around any potential disruption to consumers’ television service.

Broadband Services Speeds

Questions (34)

Bernard Durkan

Question:

34. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which high-capacity, high-speed broadband is available throughout the country to the industrial, domestic, commercial, educational, financial and health service sectors in line with their requirements; the extent to which such services will now compete with those available in other EU jurisdictions; the extent to which further investment in the infrastructure is required in order to compete with the highest standards available globally; if he has set specific targets in this regard; and if he will make a statement on the matter. [4805/13]

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Written answers

Considerable progress has been made in recent years in both the coverage and speeds of national broadband infrastructure, with a multiplicity of commercial operators, providing services over a diverse range of technology platforms. The Next Generation Broadband Taskforce, which I chaired, concluded that large commercial customers generally have access to the high speeds they require. The Taskforce also noted that approximately one-third of all homes have access to speeds of 100Mbps. Significant further Private Sector investment is also underway, which will mean that 50% of the population will have access to speeds of 70Mbps – 100Mbps by 2015.

The Government has also undertaken a number of initiatives to bring broadband to those parts of the country where commercial operators have been unable to offer services, including the provision of 100Mbps connectivity to second level schools, MANS, the National Broadband Scheme (NBS) and the Rural Broadband Scheme (RBS). The Government, through the National Broadband Plan, which I published on 30 August last year, has recognised that the key imperative now is to ensure high speed broadband availability to all. This is a challenge which faces all Member States and comparisons between Member States can be difficult as measurement metrics differ, and Member States often experience different barriers to deployment. The National Broadband Plan commits to ensuring that high speed services of at least 30Mbps are available to all of our citizens and businesses, well in advance of the EU’s target date of 2020.

Ireland is now moving to a new phase of public and private sector investment in broadband which will see significantly improved speeds delivered across the country. As a consequence of the recent multi-band spectrum auction conducted by ComReg, new high speed 4G telecoms services will be rolled out by mobile operators and will significantly increase the speeds available across wireless platforms. In addition, the commercial sector is already investing in high speed fixed line services, particularly in urban and semi-urban areas. The National Broadband Plan commits the Government to investing in areas where high speed services are not commercially viable and will not be provided by the market. This will ensure that citizens or businesses, wherever they are located, have a broadband connection which meets their needs to interact effectively with society and business in a global digital environment.

Question No. 35 answered with Question No. 26.

Offshore Exploration

Questions (36)

Brendan Griffin

Question:

36. Deputy Brendan Griffin asked the Minister for Communications, Energy and Natural Resources if he has considered establishing a State agency dedicated to developing the oil industry; and if he will make a statement on the matter. [4605/13]

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Written answers

Ireland operates a model where the State provides the opportunity and private industry bears the risk associated with investing in exploration activity. In addition to offering regular and attractive licensing initiatives and actively promoting the opportunity to invest in exploration in the Irish offshore, my Department works with a range of other State bodies to support the conduct of effective exploration for our natural resources of oil and gas. I am of the view that it would be more effective to seek to build on this cooperation rather than to establish a new State body resulting in significant additional public spending and potentially duplicating existing functions.

Question No. 37 answered with Question No. 6.
Question No. 38 answered with Question No. 9.

Hydraulic Fracturing Policy

Questions (39)

Michael Colreavy

Question:

39. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if he will specify the level of drilling in terms of width, depth and subterranean that is permitted if an exploratory licence for hydraulic fracturing were permitted; and if he will make a statement on the matter. [4675/13]

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Written answers

No application has been received by my Department for a permit to drill an exploration well using hydraulic fracturing. The purpose of an exploration well is to obtain data on a specific geological objective or objectives. The depth of each individual well will, therefore, be determined by the depth of the related geological objective. In relation to the diameter of exploration wells, generally each hole section is drilled using standard diameter drill bits to allow standard diameter casings to be run and cemented into place for wellbore stability and well control purposes. As the diameter of each casing must be wide enough to fit the drill bit for the subsequent hole section, the diameter of each hole section decreases with depth. So, at the surface the diameter of the cased hole can typically be in the range of 20 to 30 inches, while at the bottom, over the geological objective, the diameter of the cased hole can typically be in region of 6 inches.

The EPA has recently announced the terms of reference for the more extensive second stage of its research into the use of hydraulic fracturing, the final results of which are expected in early 2015. I can reiterate that until there has been time to consider the outcome of this EPA research, no decision will be made on any proposal for the use of hydraulic fracturing in exploration drilling in Ireland.

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